HIPs Implementation Update

11th June 2007

The Government have taken the next step in the implementation of HIPs by introducing the new Regulations to Parliament.

The Government will introduce HIPs in England and Wales on 1st August 2007 on a phased basis, starting with 4 bedroom or larger properties. The Regulations that have been laid on 11th August and the accompanying Commencement Order will set the process in motion.

1. The Regulations that have been laid before Parliament are the Revised Home Information Pack Regulations and will replace the regulations laid before Parliament in March.
   
   
2. A Home Information Pack will be required, including an Energy Performance Certificate (EPC), when a home is marketed and will be rolled out in phases, according to the number of bedrooms in the property.
   It is envisaged that there will be three phases of implementation:
       • Homes with 4 or more bedrooms
       • Homes with 3 bedrooms
       • All other homes
   
   Each phase of the roll out will be activated by a Commencement Order. The first Commencement order for 4 bedroom homes and above has now been made. Further Commencement Orders will then be made for subsequent phases. The criteria for rolling out to the next stage of HIP Implementation will be:
   
    a) Whether sufficient Home Inspectors and Domestic Energy Assessors have been certified or accredited to meet the demand
    b) Whether the regional distribution of Home Inspectors and Domestic Energy Assessors will ensure the adequate supply of EPCs; and
    c) In assessing a) and b), taking into account of the lessons learned from the operation of HIPS.
   
   In order to meet the criteria listed above for 3 bedroom homes it will be necessary to have 2000 Home Inspectors and Domestic Energy Assessors in place. Based on current evidence, to cover the whole of the market, it is expected that 3000 Home Inspectors and Domestic Energy Assessors would need to be in place.
   
   The Government will publish on their home information pack website www.homeinformationpacks.gov.uk the national numbers of Inspectors and Assessors on a regular basis.
   
   
3. Any property on the market before 1st August 2007 will not need to produce a HIP. The Government will, however, set a date when all properties that remain on the market will be required to have a HIP.
   
   
4. The Government will carry out a full public consultation this summer on the issue of what, in the longer term, the maximum age of an EPC within a HIP should be when a property is first marketed. This consultation is in line with the agreement reached with RICS following the Judicial Review
   
   
5. These plans will NOT affect the start of the implementation of HIPs and EPCs on 1st August 2007 and the subsequent roll out.
   
   
6. From 1st August 2007, any Estate Agent marketing a home in England and Wales with a HIP will be required to belong to an approved redress scheme for HIP related complaints. The Department of Trade and Industry will introduce this requirement in time to coincide with the introduction of HIPs on 1st August.
   
   
7. The Government will carry out an assessment of how well HIPs are working by the end of the year to determine what action, if any, is required to maximise the reduction of carbon emissions and to ensure that market led transformation moves forward as quickly as possible.
   
   
8. From 1st August there will be a requirement for Estate Agents to include the charts for energy efficiency in their particulars.